AUTHORITY: Implementing and authorized by the Prairie State 2000 Authority Act (Ill. Rev. Stat. 1985, ch. 48, par. 1501 et seq.).

SOURCE: Emergency Rules adopted at 10 Ill. Reg. 4257, effective February 20, 1986; adopted at 10 Ill. Reg. 16682, effective September 24, 1986.

SUBPART A: SUMMARY AND DEFINITIONS

 

Section 5410.100  Summary and Purpose

 

a)         The Employer Training Assistance Program (the "Program") provides training funds to qualified employers who

 

1)         currently employ workers threatened with layoff, or

 

2)         are increasing the number of jobs available to Illinois workers, are expanding the tax base in Illinois or are increasing Illinois exports.

 

b)         Under this Program the funds are used to defray the costs of qualified training programs provided by these employers.  The establishment of employment training programs which foster job retention, reduce employer unemployment insurance costs and meet the needs of the economy for skilled workers is the principal goal of the Program.

 

Section 5410.110  Definitions

 

            "Act" means the Prairie State 2000 Authority Act (Ill. Rev. Stat. 1985, ch. 48, par. 1501 et seq.).

 

            "Applicant" means an employer who has applied to receive a Loan or Grant under this Program.

 

            "Application" means an application submitted by an employer applying for Loans or Grants under this Program.

 

            "Authority" means the Prairie State 2000 Authority.

 

            "Board" means the Board of Directors of the Authority.

 

            "Grant" means a grant awarded by the Authority under this Program.

 

            "Loan" means a loan awarded by the Authority under this Program.

 

            "Loan or Grant Agreement" means the Agreement signed by the Authority and an Applicant by which the Authority obligates itself to provide funds to the Applicant under this Program.

 

            "Program" means the Employer Training Assistance Program.

 

            "State" means the State of Illinois.

 

            "Training Program" means a program of educational or vocational training which meets the requirements of Section 5410.210.

 

            "Training Provider" means an institution which provides a Training Program.

SUBPART B: APPLICATION PROCESS

 

Section 5410.200  Eligible Applicants

 

Persons qualifying as employers as defined in Section 205 of the Unemployment Insurance Act, (Ill. Rev. Stat. 1985, ch. 48, par. 315), are eligible to apply for and receive funds under the provisions of this Program, provided that the Applicant is unable to provide sufficient funds internally, or from other available sources, including Federal, State or locally administered employment training programs (Section 18(a)(2) of the Act); and:

 

a)         the Applicant is expanding its business enterprise in this State, is locating a new business enterprise in this State, is introducing more efficient technology into its operations which will result in greater output per employee, is expanding into new markets, or is expanding exports from Illinois (Section 18(a)(3) of the Act); or

 

b)         the employees to be provided training are threatened with layoff by the Applicant unless the proposed training is made available to them.  (Section 18(a)(3)(ii) of the Act)

 

Section 5410.210  Eligible Training Programs

 

From applications filed by eligible employers, the Authority may select for an award of a Loan, Grant or both, on the basis of the criteria set forth in Section 5410.300, Training Programs which meet the following provisions:

 

a)         The Training Program provides job-linked training which offers special skills for career advancement and which prepares the trainee for and leads directly to improved performance on the job or a new job with definite career potential and long-term job security.  (Section 18(a)(1) of the Act)

 

b)         The Training Program provides training in fields for which there are critical demands for certain skills.  (Section 18(a) of the Act)

 

c)         If the proposed Training Program is specifically the subject of an existing collective bargaining agreement, the signatory labor organization has consented in writing to the Training Program to be funded by the authority.  (Section 18(c) of the Act)

 

Section 5410.220  Application Requirements

 

Applications for funds shall be submitted by Applicants on forms provided by the Authority and shall include the following:

 

a)         The Applicant's name, address and telephone number, and the names of the Applicant's Chief Executive Officer or other authorized officer, Training Director and a contact person for the Training Program.

 

b)         A brief description of the Applicant's business.

 

c)         Identification of the Training Provider.

 

d)         A budget indicating the costs of the employer Training Program, and the source of funds to finance the costs.  The budget may be submitted on forms to be provided by the Authority and shall include information such as the cost of contractual services, the cost of materials and supplies, the salaries of personnel conducting the training, any travel costs, etc.

 

e)         A description of the Training Program including total hours of training to be provided to each person.

 

f)         Information demonstrating that the Applicant meets the requirements of Section 5410.200 and the Training Program meets the requirements of Section 5410.210.

 

g)         Information regarding the employees who will participate in the Training Program including the names and social security numbers of the employees and other information regarding those employees the Authority deems necessary such as job title or classification.

 

Section 5410.230  Technical Assistance

 

Upon reasonable request, representatives of the Authority shall provide assistance to Applicants in completing the Application and Training Program budget.

 

Section 5410.240  On-Site Inspection

 

During the application process, Applicants shall provide representatives of the Authority access to the Applicant's place of business and site where the Training Program will be conducted.  The Authority shall provide notice to the Applicant prior to requesting such access and shall request access only during normal business hours.

SUBPART C: SELECTION CRITERIA

 

Section 5410.300  Selection Criteria

 

a)         On at least a quarterly basis, and subject to the availability of funds, the Authority shall review Training Programs for which complete Applications have been received by Applicants who satisfy the requirements of Section 5410.200 and, considering the following criteria, shall select for an award of a Loan, Grant or both, those Training Programs which advance the purposes of the Act and comply with Section 5410.210:

 

1)         The extent to which the Training Program addresses Authority objectives as stated in Section 5410.100;

 

2)         The extent to which the Training Program maximizes the number of jobs to be created or retained (Section 18(f) of the Act);

 

3)         The extent to which the Training Program defines training needs in terms of employability;

 

4)         The relative degree of need for the skills to be provided by the Training Program, including both Applicant need and the transferability of the skills throughout the community in which the Applicant is located;

 

5)         The extent to which the Training Program is designed to meet the training needs as defined by the Applicant;

 

6)         The cost effectiveness of the Training Program,  considering such statistics as the cost per contact hour and the cost per trainee;

 

7)         The amount of the Applicant's financial contribution;

 

8)         The financial capacity of the Applicant to repay the Loan, if applicable, considering statistics such as the Applicant's debt ratio, cash flow projections and production levels; and

 

9)         The contribution the Training Program will make to the economic development of the State or region by the Applicant.

 

b)         The nature and purpose of the Training Program will determine the extent to which each of the foregoing criteria will apply and the weight to be given by the Authority to each.

 

c)         The Authority shall select for an award of a Loan, Grant or both only those Applicants who, in selecting persons for participation in the Training Program, agree to comply with all state and federal statutes, rules and regulations, which prohibit discrimination based on an individual's race, color, religion, place of national origin, ancestry, sex, age, marital status, physical or mental handicap unrelated to ability or an unfavorable discharge from military service, including Title VI of the Civil Rights Act of 1964, the Constitution of the United States, the 1970 Constitution of Illinois, the Illinois Human Rights Act and Section 504 of the Rehabilitation Act of 1973, as amended.

 

Section 5410.310  Eligible Costs

 

The costs of an employer incurred directly as a Training Program expense including salaries and benefits of training staff, contractual services, overhead, materials and supplies, equipment, travel and other related expenses directly necessitated by the Training Program are eligible costs of an employer which may be reimbursed by Loan or Grant proceeds or both.

 

Section 5410.320  Loan Amounts

 

The Authority may issue Loans in such amounts as the Board determines.  The Board may approve Loans in amounts necessary to pay up to 100% of eligible costs, as defined in Section 5410.310, incurred by an employer for training.  In determining the amount of the Loan to be awarded the Authority shall consider the availability of funds and the factors stated in Section 5410.300(a).

 

Section 5410.330  Terms of Loan

 

The Loan may mature at such time or times, may be at such interest rate, may be in such form, and may contain such terms, covenants, and assurances, all as may be provided by the Authority in the Loan Agreement.

 

Section 5410.340  Loan Forgiveness

 

The Authority shall provide in a Loan that for each individual who remains continuously employed on a full-time basis with the employer for one year after completion of the training program, up to a maximum of 25% of the eligible costs, as defined in Section 5410.310, attributable to that employee and financed by the loan, may be credited as partial repayment of the principal of such loan. (Section 18(d) of the Act)

 

Section 5410.350  Grant Amounts

 

The Board may approve Grants in amounts necessary to pay up to 50% of eligible costs, as defined in Section 5410.310, incurred by an employer for training.  In determining the amount of the Grant to be awarded the Authority shall consider the availability of funds and the factors stated in Section 5410.300(a).

 

Section 5410.360  Withholding of Grant Proceeds

 

The Authority shall withhold at a minimum 25% of the amount of the grant until the trainee has been retained in employment for 90 days after the end of training, except for those occupations in which it is not customary for a worker to be employed 90 consecutive days with a single employer (including occupations such as carpentry, construction work, landscaping, roofing and other seasonal or trade occupations).  In such cases the Board may substitute a period similar to the probationary period customary to such occupation, which shall be not less than 500 work hours. (Section 18(c) of the Act)

 

Section 5410.370  Grant Restrictions

 

The Board shall award Grants to Applicants only when the applicant has demonstrated that a loan would not achieve the purposes of the program (Section 18(f) of the Act).  An Applicant may demonstrate that a Loan will not achieve the purposes of the program by demonstrating that a Loan is against company policy; that a Loan will place an unreasonable burden on the Applicant such as when there is an uncertainty as to future profits or where Loan repayments would impair cash flow, or by other similar demonstrations.  No grant shall exceed one-half the cost of the Training Program to be provided by the employer or its agent. (Section 18(c) of the Act)

 

Section 5410.380  Fund Restrictions

 

a)         No funds shall be provided for a Training Program which allows a person to receive employment training under that Training Program for a period greater than 18 consecutive months. (Section 18(e) of the Act)

 

b)         No Training Program using funds provided under this program shall extend for more than 24 months.  (Section 18(e) of the Act)

 

Section 5410.390  Disbursement of Proceeds

 

Upon approval of an Application for a Grant and execution of a Grant Agreement, and subject to the provisions of this Program, fifty percent (50%) of the funds to be provided by the Authority to the Applicant shall be immediately disbursed.  The remaining fifty percent (50%) of the funds to be provided by the Authority shall be disbursed upon receipt of evidence that the employees who participated in the Training Program have been retained and are employed by the Applicant 90 days after completion of the Training Program.  Upon approval of an Application for a Loan and execution of a Loan Agreement the funds to be provided by the Authority shall be immediately disbursed to the Applicant.

SUBPART D: POST AWARD REQUIREMENTS

 

Section 5410.400  Recordkeeping and Access to Information

 

Any employer who receives Loans or Grants shall:

 

a)         Maintain accounts, records and books relative to the Training Program including the name of each participant in the Training Program and whether the employee successfully completes the Training Program.  The employer shall maintain those records for a period of three years from the date of completion of the Training Program.

 

b)         Provide to representatives of the Authority at all times during normal business hours and as often as the Authority may require, reasonable access to the Training Program and to all reports, accounts, records and other data regarding the Training Program and the employees participating in the Training Program.  The Authority shall provide notice to the employer prior to requesting such access.

 

c)         Permit the Authority or any accountants approved by the Authority to make excerpts or transcripts of the Training Program accounts, statements and documents as required by the Authority.

 

Section 5410.410  Reporting

 

Employers who receives Grants or Loans shall submit to the Authority a progress report 90 days after completion of the training.  The report shall include a brief description of the training provided and a statement indicating the progress and employment status of employees who participated in the Training Program.  Employers who receive Loans shall submit an additional report one year after completion of the training which states the number of employees who participated in the training who are still continuously employed by the employer.